The Central Bank of Uzbekistan and the IMF discussed the issuance of bonds pegged to UZONIA

The Central Bank of Uzbekistan and the IMF discussed the issuance of bonds pegged to UZONIA

The Central Bank of Uzbekistan and representatives of the International Monetary Fund (IMF) reviewed prospects for the development of the government securities market, including the possibility of issuing floating-rate bonds pegged to the interbank benchmark rate UZONIA.

The talks were held following an IMF technical mission dedicated to the development of the government bond market.

One of the key topics was the potential introduction of securities with yields calculated based on UZONIA. Fund experts believe that the current market situation may create conditions for a phased launch of such instruments in a pilot format.

According to IMF experts, UZONIA-pegged bonds could provide banks with a more stable source of long-term funding, reduce reliance on short-term borrowing, and strengthen the transmission of monetary policy signals into the economy.

In addition, the parties discussed prospects for expanding the use of this benchmark in banking and financial products. In particular, they addressed deposits, loans, and interest rate swaps, the terms of which could be set taking into account the dynamics of UZONIA.

The application of such instruments could help financial market participants assess and manage interest rate risks more effectively.

The participants also touched upon the market's readiness for the introduction of new products, possible launch timelines, and the necessary next steps.

Following the meeting, the parties reaffirmed their interest in continuing cooperation and joint research to deepen and enhance the stability of Uzbekistan's government securities market.